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Thank you for your patience. There is no cap in liability provided by statute . If you have suffered loss as a business then your damages would be equivalent to your loss of profit, damages are not calculated on the basis of the fee that you pay for the provision of the service. . However most service provision agreements will stipulated in the agreement the limit of liability and if you agreed to this that would be the cap.
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Morning, thank you for clarifying, calculating liquidated daages is not easy however it is not plucking a figure from thin air. Accountants assist with this and the figure relates to estimated loss of profit if the service provider was to breach their contract. Taking a very simple example if you were running a quarry site and you rely on company A to transport it to your end supplier and per week you make £10,000 then if they were to fail to turn up for at least a week you would lose that much and you account for time you need to get cover so in that case you would estimate at say £15,000 damages